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    Principles of Economics Study Set 12
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    Exam 14: Taxes, Transfers, and Income Distribution
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    Under What Circumstance Would an Increase in the Payroll Tax
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Under What Circumstance Would an Increase in the Payroll Tax

Question 153

Question 153

Essay

Under what circumstance would an increase in the payroll tax paid by employers cause the wage to fall by the same percentage as the tax increase, regardless of the labor supply curve's elasticity?

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